Spent a lot of time on the phone yesterday, first with the VT dept of taxes getting them to understand that we did in fact pay our taxes in full. Somehow they had "lost" one of the estimated payments from January. She got that fixed but I still have to fill in the form asking them to abate the penalty and interest because she couldn't do that.
Then the "fun" call to the IRS. First, of course, I'm on hold for a LONG time, killed the phone with the weak battery, then the one DW had in the BR with her (turns out it was plugged into the switched outlet for the light and wasn't charged). Got the upstairs phone and finally some lady with an Indian accent on a bad connection. Had a hard time understanding what she was saying.
They claimed I owed $325 plus another $200+ for penalties and interest. How is it reasonable to penalize at 60% of what is owed!!! The April estimated payment for 2022 was applied to 2021 taxes AND happens to be $325 less than what we owed in April. Turns out that was my fault because I used the ES forms they mailed to me but they were for 2021 and I didn't realize that until last week when I went to pay the second installment. Printed new ones for payments 2-4.
OK, they had the estimated payment for 2022 applied to 2021 so they should have had WAY more money than I owed applied to 2021 taxes, right. What happened to the 2021 tax payment I made in April WITH 2021 1040-V written on the memo line?? THEY FREKIN' APPLIED IT TO 2020 TAXES!!!!! WTH???? First, how did they screw that up and WTH would anyone want to pay extra on the prior years taxes which were already paid?? Does no one have a brain there??
Since I asked (they have to get permission from the taxpayer to move money between years even if THEY screwed up) she got the payment moved to 2021. BUT it will take 10 days to get the penalty and interest removed. AND since they can't move anything without the taxpayer requesting it, I have to call them back in 10 days, spend another half a lifetime on hold, and request the then presumably complete estimated payment moved from 2021 to 2022. Otherwise they would send me my "refund". However I'm afraid if I got that and send them a new check for the first estimated 2022 payment they will claim it was late and charge me a penalty and interest.
I wonder why people hate dealing with the IRS. I also wonder why I can't charge them the penalty and interest they were going to charge me since I had to deal with their incompetence.
Oh the IRS woes!! BJ and I closed down a furniture store in December 2001. In May of 2002, on my birthday no less, I got 2 orangey envelopes. I immediately knew that color, yep, IRS. Inside was checks, totaling $27,000!
NOT MY MONEY!
It could only mean trouble. I called them. A bright female voice told me since I closed my business in June 2001, it was a refund of payroll taxes. Uhh, no, I closed in December 2001. Miss Brilliant said to just send them back. Yeah, right. I was so mad I tossed them on the dresser. Time passed. The IRS sent me an invitation to pay taxes on the $1500 in interest they paid me for holding that $27,000 of their money.
I wasn’t going to pay income tax on interest that wasn’t mine to start with, so I contacted Marvin Zindler on Channel 13 News in Houston. He was a colorful character whose claim to fame was closing down a whorehouse in LaGrange that had stood since before the Depression. The house straddled the county line. When the sheriff raided it, the ladies simply went to the other side of the house. Somehow both sheriffs never raided at the same time. There was a movie made about it. Best Little Whorehouse in Texas, starring Dolly Parton and Burt Reynolds.
After that Marvin Zindler became a consumer advocate on the evening news. He interviewed me and put it on the news, making idiots of the IRS. He set me an appointment at the Federal Building to take the checks back, I took copies of all my employment records, 941 deposit forms, copies of checks, the works, to “prove” the money did in fact, belong to the IRS.